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Machines A and B are mutually exclusive and are expected to produce the following real cash flows: C3 Cash Flows (5 thousands) Machine C1 C2

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Machines A and B are mutually exclusive and are expected to produce the following real cash flows: C3 Cash Flows (5 thousands) Machine C1 C2 -104 +114 +125 B -124 -114 +125 +137 The real opportunity cost of capital is 8%. a. Calculate the NPV of each machine. (Enter your answers in dollars not in thousands. Round your answers to the nearest whole dollar amount.) NPV Machine $ 109 B b. Calculate the equivalent annual cash flow from each machine. (Enter your answers in dollars not in thousands. Round your answers to the nearest whole dollar amount.) Cash Flow Machine A B

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